What is not considered a source of nonappropriated funds (NAF)?

Nonappropriated funds (NAF) are essential for supporting morale, welfare, and recreation programs in the military, and understanding their sources is crucial for effective management. Surcharges, which are additional charges added to a certain service or item, are generally not categorized as a source of nonappropriated funds. Instead, they typically fall under appropriated funds, as they may be considered a method of cost recovery or a way to cover expenses that align with budgetary guidelines.

In contrast, membership fees, concessions, and fundraising events directly generate revenue specifically intended for enhancing the quality of life for service members and their families. Membership fees represent an income stream from individuals who pay to access various services and programs. Concessions involve sales from vendors that operate on military installations, contributing funds that support NAF programs. Fundraising events are organized activities that raise money for specific causes, further adding to the pool of nonappropriated funds dedicated to welfare initiatives. Understanding these distinctions helps clarify the importance of diverse funding sources in maintaining robust morale and welfare offerings in military communities.